Legal challenges to coal mine proposals in two states

Farming communities in Queensland and New South Wales have launched legal challenges against two huge coal mine developments. In both cases, locals are concerned that the mines will contaminate the ground water and damage the environment. It'll be a tough challenge, particularly for the farmers in Queensland. They're taking on Gina Rinehart, who has a part share in the proposed development.

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ELEANOR HALL: Farming communities in Queensland and New South Wales have launched legal challenges against two huge coal mine developments. In both cases, locals are concerned that the mines will contaminate the ground water and damage the environment.

It'll be a tough challenge, particularly for the farmers in Queensland who are taking on Gina Rinehart who has a part share in the proposed development.

Eliza Harvey has our report.

ELIZA HARVEY: In a good season, Peter Anderson and his family run about 4,000 head of cattle on their property in the Galilee Basin in central Queensland. But the property has just been drought declared, so they're only running about 2,300 cattle.

PETER ANDERSON: We've got seven dry dams out there, three more that will be dry in a matter of weeks and we will be almost exclusively onto the bore water to water the stock by then. Whereas we do use the bores extensively normally, but when it gets dry... because it's not good dam country there's not good places to build big dams or anything like that.

ELIZA HARVEY: Water supply is just one of the reasons that landowners in the Galilee Basin are concerned about the proposed GVK-Hancock coal mine.

GVK is an Indian company and owns about 80 per cent of the project, while Gina Rinehart's Hancock Coal owns about 20 per cent.

Landowners such a Peter Anderson are challenging its mining application through the Queensland Land Court. He says he's happy for the mine to go ahead if his family is properly compensated if something goes wrong.

PETER ANDERSON: So they have offered us an agreement but it doesn't cover off on what we want it to cover off on. So what we're hoping to achieve in the land court is that the land court will recommend to the minister that before granting the mining lease that GVK strike a make-good agreement with us.

ELIZA HARVEY: Another party to the legal challenge is 73-year-old grandmother, June Norman. She grew up in the Queensland countryside and is concerned about environmental damage. She's also concerned about going up against the might of Gina Rinehart.

JUNE NORMAN: It's very scary for me. I'm just an ordinary, everyday citizen. I'm actually an aged pensioner. And yes, it is scary, but I made a decision a few years ago that I would not allow fear to prevent me from making any decisions or doing anything that I feel very strongly about. And I feel very strongly about my love of the country and my love of the people and definitely the love of my grandchildren.

ELIZA HARVEY: GVK says it will respect the legal process and if successful would employ about 5,000 people during construction.

There's another battle between farming and coal mining south of the border in New South Wales. Whitehaven Coal wants to build a project near the Laird State Forest, in the rich farming land of the Liverpool Plains. The project has been approved by state and federal governments and will also create thousands of jobs.

But farmer, Phil Spark, says the approval was granted on dodgy advice.

PHIL SPARK: From the environmental point of view it has very high conservation value and that was ignored in the approval. Basically the consultants gave the mines what they needed to get approval. So they, they falsified and exaggerated.

ELIZA HARVEY: Whitehaven Coal denies his allegations and says it's always conducted rigorous testing of the site. Both court challenges are set down for a couple of weeks, but there's no time frame for when the courts might deliver their findings.